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Signed contracts to buy US homes at 3-year high

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  • Res Novae Ashburn, VA
    May 30, 2013 9:27 a.m.

    A couple of caveats. First, who are the buyers? I think there's evidence that a good portion of them are buying them for flip sales, which is reminiscent of the last bubble.

    Second, banks are still holding back many foreclosures from the market. I'd be concerned that this is creating artificial scarcity and pushing home prices up from what the real market value is.

  • Igualmente Mesa, AZ
    May 30, 2013 10:06 a.m.

    A major factor in the surge is FHA requiring mortgage insurance last for the life of the loan effective June 3, 2013, rather than allowing the insurance to be dropped when loan to value goes below 78 percent.

  • SCfan clearfield, UT
    May 30, 2013 12:24 p.m.

    My wife and I are currently in the market and have seen some of these held back foreclosures that Res Novae has referred to. Sad part is, these empty homes are deteriorating with every month they stay empty. That brings the value down, not only for the home, but for the neighborhood. The banks, probably at the behest of the government are not doing the housing market any favors when letting good homes go to waste. Especially when lots of buyers are available. HUD and others should want to get these homes into new hands ASAP. That would keep home values and neighborhoods up. In other words, I don't understand their policy. But, since it's big government, how could I.

  • worf Mcallen, TX
    June 1, 2013 12:57 p.m.

    As our country sinks further into debt,--whats to keep Chinese investors from buying up our houses?